Vat on work equipment

blackrovers

Hi I'm a freelance animator and I use a high spec laptop and other equipment for the work I do. My problem is that this equipment has now become obsolete and I have to upgrade. Only problem is that the cost is very high for me.

So what I'm hoping to find out is what I can claim back from either the cost of this equipment from either Vat or tax as it's used for work purposes?

Thanks for any help given

Cheers

thecommander

blackrovers wrote: »

Hi I'm a freelance animator and I use a high spec laptop and other equipment for the work I do. My problem is that this equipment has now become obsolete and I have to upgrade. Only problem is that the cost is very high for me.

So what I'm hoping to find out is what I can claim back from either the cost of this equipment from either Vat or tax as it's used for work purposes?

Thanks for any help given

Cheers

If you're registered for VAT, and it's a purchase for the company you can claim the VAT back on your next return.

blackrovers

How do you get registered for VAT and I don't work for a specific company I work as an individual and get work from various companies to complete and then I invoice them for the work completed? So does that changes things?

Pixelcraft

No that's fine, you can register for VAT as a sole trader. Obviously you'll then be obliged to charge VAT on every applicable job then, and on your return you offset the cost of the VAT spent on business expenses vs the VAT charged on goods or services provided

blackrovers

Do you know if I can claim tax relief or a tax return on the equipment and also how would I go about getting registered as a sole trader to claim this VAT?

Cheers for all teh advice you have given already. Much appreciated. Thanks

Pixelcraft

Yes it will have an impact on your income tax afaik. If you're invoicing people surely you're already a sole trader? You can get the VAT registration form from revenue.ie, although I think it's a good idea to get an accountant involved

MidlandsM

blackrovers wrote: »

Do you know if I can claim tax relief or a tax return on the equipment and also how would I go about getting registered as a sole trader to claim this VAT?

Cheers for all teh advice you have given already. Much appreciated. Thanks

register at cro.ie to be a sole trader. Then contact revenue to register for vat.

ssbob

blackrovers wrote: »

Do you know if I can claim tax relief or a tax return on the equipment and also how would I go about getting registered as a sole trader to claim this VAT?

Cheers for all teh advice you have given already. Much appreciated. Thanks

Hi Black Rovers,

When you buy equipment for the purposes of your business you are fully entitled to claim the VAT back on these. You should register for VAT if you are working directly with companies but if you are supplying services to individuals who are not VAT registered then you may need to think about whether adding VAT to your invoice might make you dearer than your competitor.

As for claiming the expense of the equipment against your tax return, this is also true, as this equipment is classified as a fized asset you are allowed to claim capital allowances over 8 years for any fixed asset which you may have in the business. If the Fixed Asset is replaced within the 8 years then you are entitled to accelerate the capital allowance in the final year to make sure you fully amortise for it, however should you sell the Fixed Assett, you will also have to include the sale in your books.

Hope this helps

Bob

sandin

if most of your work is for companies that are vat registered, it won't affect them as they'll claim the vat back themselves.

For you the benefit is you can claim the vat back on almost all business associated expense. Phones, electricity, stationery supplies, broadband, computers, software, etc etc.

http://www.revenue.ie/en/tax/vat/registration/index.html

Eoin

blackrovers wrote: »

Do you know if I can claim tax relief or a tax return on the equipment and also how would I go about getting registered as a sole trader to claim this VAT?

How have you been paying your income tax until now? Anyway, you need to register as a sole trader AND also register for VAT. It's possible to be a sole trader and not be VAT registered at all.